My mother is thinking of moving to a self-care unit in a retirement village. The unit costs $460,000. She has $340,000 in cash, a super pension of $1208 a fortnight indexed and a house worth $700,000. Should she sell the house to buy the unit and invest the rest, or borrow to fund the unit?
You should take advice on whether the rental returns on the property, after costs, would be more than investing the proceeds from its sale. Unlike aged care, the rules that enable people to rent their former home with certain asset and income exemptions don't apply to those living in a retirement village.
I turn 65 next July, work part time and my wages represent 25 per cent of my gross taxable income. Can I make non-concessional super contributions after 65 if I'm working the same hours? Can I make non-concessional contributions three weeks before I turn 65? What is the limit I can contribute once I reach 65? If I use shares as a non-concessional contribution to my DIY super fund, is there an annual limit on the amount before and after 65 while satisfying the work rule?
You can make any kind of contribution until 75, provided you pass the work test, which involves working 40 hours within 30 consecutive days in the financial year in which you make the contribution. People aged 65 to 75 have the same contribution caps as everyone else but aren't able to bring forward three years' non-concessional contributions.
Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general and readers should seek their own professional advice. Email: firstname.lastname@example.org.